Generative Artificial Intelligence or GenAI shines bright as the ‘it thing’ of this decade. GenAI goes beyond traditional Artificial Intelligence (AI) tasks like classification or prediction, and has the ability to create original content like images and text.

The growth of genAI tools has been explosive in the past year and the latest McKinsey Global Survey revealed that organizations are using genAI regularly in at least one business function.

The survey further revealed that nearly 25% of surveyed C-suite executives are personally using genAI tools for work. While more than 25% of respondents from companies using AI said genAI is already on their boards’ agendas. 40% of respondents said their organizations will increase investment in AI overall because of advances in genAI.

In the AI adoption race, organizations exploring genAI capabilities in conjunction with traditional AI are further ahead, have the first mover’s advantage, and are reaping more benefits. The ever-evolving adtech landscape is leaving no stone unturned in making the most out of genAI to level up.

How is the adtech landscape leveraging the latest in AI?

GenAI unlocks a whole new world of opportunities by providing creative assistance that enables marketers and advertisers with data-backed creative assistance to be more efficient and deliver more impactful campaigns.

From text and creatives to ads and marketing, the evolution of AI and the adoption of next-gen AI models like ChatGPT by Open AI, Bard by Google, and Microsoft Bing is creating huge waves of change and opening doors to never-seen-before possibilities.

This marks the beginning of a new era that is transforming the future of work by bringing together the power of human and artificial intelligence.

AI can assist through the entire process from research to content generation and distribution. It can expedite the creative process by suggesting design elements, layouts and color schemes, and help create more suitable ad copies, product descriptions, and marketing content.

What are the benefits of leveraging Generative AI in advertising?

Adopting genAI can help advertisers save time and resources by enabling them to produce content faster and with ease. By enhancing various aspects of advertising campaigns and strategies, genAI can have a significant impact on the adtech landscape.

The capabilities and use cases of genAI in advertising are vast:

• Produce large volumes of high-quality content across formats like text, image, and video, with ease.
• Analyze customer data and create personalized ad campaigns that have higher engagement and conversion rates.
• Help advertisers in the creative process by suggesting ideas that inspire them to explore newer avenues, and curate fresh, innovative campaigns and messaging.
• Easily create multiple ad variations, simplify A/B testing, and boost ad performance and ROI.
• Explore vast datasets, evaluate, and derive takeaways on key aspects like customer behavior, preferences, and market trends.
• The ability to hyper-personalize at scale using the learnings from AI.

The fusion of Contextual Targeting and GenAI: Fueling new-age advertising strategies

AI is no replacement but an assistant for humans to do more, better, and faster. The two big factors that are currently ruling the adtech landscape are Contextual and Generative AI.

What if you could bring the two together? Imagine the magic that can be created by capitalizing on these two revolutional tools?

Here’s how we leverage the two at Seedtag and enable brands to reap maximum benefits:

• Our proprietary AI-powered contextual technology, Liz©, has the ability to analyze and comprehend expansive volumes of written and visual content to derive insights that help determine the best place to place an ad that will resonate with customers.
• Our GenAI capabilities leverages the learnings from Liz© to provide more relevant creative inputs on colors, image elements, and text to further enhance the quality of the ads.

Advertisers and creative agencies are using the best of AI and contextual advertising to curate strategies and generate content that perform better than the conventional ones.

Contextual targeting primarily addresses the big concern of privacy and enables advertisers to make data-driven decisions, and reach their target audience without leveraging any third party cookies.

The intelligence from the analysis then enables generative AI in the creative process and empowering advertisers to work more efficiently and create more engaging and personalized campaigns.

While AI empowers customers with data to drive decision making, genAI uses these data points to understand patterns and create new content like text and images. The new content created by genAI is data-backed and hence more capable of identifying elements like the best keywords, colors, and images to use for a particular campaign. The two complement each other and power more effective ad campaigns by elevating brand messaging and creatives.

Benefits for advertisers

When used together, they allow advertisers to:

• Produce high-quality, contextually relevant content by analyzing the context of a webpage or app and generating ad creatives that match the content and context of the page.
• Generate personalized and contextual ad messaging based on a user’s current search or area of interest.  
• Analyze the content and context of web pages or apps to identify relevant keywords and phrases that can be used to better target ads to specific content categories or topics.
• Optimize ad copy to match the context and language style of the content it appears alongside.
• Create narratives that align with the content and context ads appear alongside, and adapt ad content in real-time based on changing contextual factors.

Applying Contextual Targeting practices coupled with GenAI capabilities: The business impact

Developing a strategy that incorporates gen AI into contextual targeting strategies can help brands deliver more relevant and engaging ads to their desired audience. It allows them to align their advertising efforts by ensuring ads seamlessly integrate with the surrounding content and context, making it less intrusive and more engaging.

Using the duo together forges a much stronger strategy that offers myriad benefits:

• Copies and creatives generated by integrating gen AI and contextual targeting are more optimized and relevant. Thus, they garner more attention, increase click-through rates, improve ad performance, and channel a better user experience overall.
• The pair reinforces brand safety and suitability by ensuring that brand elements and messaging remain consistent across ad creatives and text. Content generated is contextually relevant and reflects the brand’s identity while avoiding ad placements on websites or apps with inappropriate or controversial content.
• Contextual targeting with gen AI can boost ROI on advertising spends by optimizing ad creatives, messaging, targeting, and placement.
• The combination can also protect brands from ad fraud by ensuring ads are displayed only on relevant and desired web pages and apps.

On the whole, using contextual targeting and gen AI in tandem enables brands to derive more value, gives them a competitive edge, and helps them future-proof their business. Advertisers can curate more personalized experiences that customers love and engage with, which in turn increases customer satisfaction and brand loyalty.

Early adoption of gen AI in integration with contextual targeting will enable brands to develop strategies that not only give a competitive advantage but help them adopt tech that is integral in the advertising space. It is an opportunity to level up and better position themselves in the ever-changing landscape for continued success.

Explore our contextual AI solution that is built to provide brands a premium advertising approach. To know more, get in touch.

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